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18 Cards in this Set
- Front
- Back
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balance sheet
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a means of organizing and summarizing what a firm owns and what a firm owes and the difference between the two (equity) at a given point in time
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net working capital
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current assets minus current liabilities
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GAAP
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the common set of standards and procedures by which audited financial statements are prepared. shows assets at historical cost
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income statement
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financial statement summarizing a firms performance over a period of time
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non cash items
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expenses charged against revenues that do not directly affect cash flow, such as depreciation
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average tax rate
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total taxes paid divided by total taxable income (percentage of income that goes to pay taxes)
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marginal tax rate
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amount of tax payable on the next dollar earned
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cash flow from assets
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the total of cash flow to creditors and cash flow to stockholders consisting on the following: operational cash flow, capital spending, and changes in net working capital
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operating cash flow
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cash generated from a firms normal business activities
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free cash flow
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another name for cash flow from assets
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cash flow to creditors
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a firm's interest payments to creditors less net new borrowings
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cash flow to stockholders
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dividends paid out by a firm less net new equity raised
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cash flow from assets
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ocf- ncs- changes in nwc
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operating cash flow =
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ebit + depreciation - taxes
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net capital spending =
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ending net fixed assets- beginning net fixed assets + depreciation
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change in net working capital =
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ending nwc- beginning nwc
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cash flow to creditors (bondholders)
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interest paid- net new borrowing
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cash flow to stockholders (creditors)
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dividends paid- new new equity raised
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